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Westpac, one of the major banks in Australia, is initiating its first trial of protective measures against scams aimed at addressing fraudulent activities associated with cryptocurrencies.
The protective measures are intended to lessen losses from scams and diminish potential risks.
As stated in the announcement, investment scams represent roughly 50% of all customer losses related to scams, while nearly one-third of all scams involve direct transfers to cryptocurrency exchanges, rendering them particularly challenging to trace.
The Westpac prohibition coincides with the notification to Binance customers that they can no longer utilize PayID for transferring Australian dollars to their accounts. Binance indicated that a “third-party provider” had imposed restrictions on the exchange, currently impacting bank transfer withdrawals.
Scott Collary, Westpac’s group executive of customer services and technology, noted that while digital exchanges play a valid role in the financial ecosystem, the growth of digital currency has led to an increase in scammers exploiting overseas exchanges.
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Westpac intends to gradually roll out a phased trial of the new crypto payment protection measures in late May. This trial is being introduced alongside other recent initiatives such as Westpac Verify, which alerts customers to potential mismatches in account names when making payments to a new bank-state-branch and account number, or when sending money to an account with no previous transaction history with Westpac.
Related: Can you recover stolen Bitcoin from crypto scams?
The consumer advocacy organization Choice reports that Australians have incurred losses exceeding $129 million due to cryptocurrency scams. In 2021 alone, the Australian Consumer and Competition Commission received more than 12,000 reports concerning such scams.
Crypto investment scams display warning signs including misleading social media advertisements, fraudulent websites, counterfeit documents, and the use of spoofing software.
Moreover, scammers may have access to undisclosed personal information or attempt to coerce targets into taking action during phone calls.
Magazine: Australia’s world-leading crypto laws are at the crossroads: The inside story
